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  5. Labor Market Inequality and the Changing Life Cycle Profile of Male and Female Wages

American Economic Journal:
Applied Economics

ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)

Labor Market Inequality and the Changing Life Cycle Profile of Male and Female Wages

  • Richard Blundell
  • Hugo Lopez
  • James P. Ziliak
American Economic Journal: Applied Economics (Forthcoming)

Abstract

We estimate the full distribution of life cycle wages for cohorts of men and women in the US using a quantile selection model to account for systematic differences in employment by gender and education group. Although common within-group time effects are shown to be a key driver of labor-market inequalities across gender, important additional differences by birth cohort emerge with more recent cohorts of women delaying child rearing, and by implication the onset of child penalties in wages. These cross-cohort differences help account for the stalling of progress in gender wage gaps over the past quarter century.

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